[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2517 Enrolled Bill (ENR)]

<DOC>

        H.R.2517
                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
  the fifth day of January, one thousand nine hundred and ninety-three


                                 An Act

  
 
  To enable the Secretary of Housing and Urban Development to 
demonstrate innovative strategies for assisting homeless individuals, to 
develop the capacity of community development corporations and community 
housing development organizations to undertake community development and 
affordable housing projects and programs, to encourage pension fund 
investment in affordable housing, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``HUD Demonstration Act of 1993''.
SEC. 2. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM.
    (a) Purpose._The purpose of this section is to enable the Secretary 
of Housing and Urban Development (hereafter in this Act referred to as 
the ``Secretary''), through cooperative efforts in partnership with 
other levels of government and the private sector, including nonprofit 
organizations, foundations, and communities, to demonstrate methods of 
undertaking comprehensive strategies for assisting homeless individuals 
and families (including homeless individuals who have AIDS or who are 
infected with HIV), through a variety of activities, including the 
coordination of efforts and the filling of gaps in available services 
and resources. In carrying out the demonstration, the Secretary shall_
        (1) provide comprehensive homeless demonstration grants under 
    subsection (c); and
        (2) provide innovative project funding under subsection (d).
    (b) Definitions._For purposes of this section, the following 
definitions shall apply:
        (1) Homeless individual._The term ``homeless individual'' has 
    the meaning given such term in section 103 of the Stewart B. 
    McKinney Homeless Assistance Act.
        (2) Homeless family._The term ``homeless family'' means a group 
    of one or more related individuals who are homeless individuals.
        (3) Incorporated definitions._The terms ``State'', 
    ``metropolitan city'', ``urban county'', ``unit of general local 
    government'', and ``Indian tribe'' have the meanings given such 
    terms in section 102(a) of the Housing and Community Development Act 
    of 1974.
        (4) Jurisdiction._The term ``jurisdiction'' means a State, 
    metropolitan city, urban county, unit of general local government 
    (including units in rural areas), or Indian tribe.
        (5) Nonprofit organization._The term ``nonprofit organization'' 
    means an organization_
            (A) no part of the net earnings of which inures to the 
        benefit of any member, founder, contributor, or individual;
            (B) that, in the case of a private nonprofit organization, 
        has a voluntary board;
            (C) that has an accounting system, or has designated a 
        fiscal agent in accordance with requirements established by the 
        Secretary; and
            (D) that practices nondiscrimination in the provision of 
        assistance.
        (6) Very low-income families._The term ``very low-income 
    families'' has the meaning given such term in section 3 of the 
    United States Housing Act of 1937.
    (c) Comprehensive Homeless Initiative._
        (1) Designation._The Secretary shall designate such 
    jurisdictions as the Secretary may determine for comprehensive 
    homeless initiative funding under this subsection.
        (2) Authority._The Secretary may provide assistance under this 
    subsection to_
            (A) jurisdictions designated under paragraph (1) (or 
        entities or instrumentalities established under the authority of 
        such jurisdictions); or
            (B) nonprofit organizations operating within such 
        jurisdictions,
    establish comprehensive homeless initiatives to carry out the 
    purpose of this section.
        (3) Criteria._The Secretary shall establish criteria for 
    designating jurisdictions under paragraph (1), which shall include_
            (A) the extent of homelessness in the jurisdiction;
            (B) the extent to which the existing public and private 
        systems for homelessness prevention, outreach, assessment, 
        shelter, services, transitional services, transitional housing, 
        and permanent housing available within the jurisdiction would 
        benefit from additional resources to achieve a comprehensive 
        approach to meeting the needs of individuals and families who 
        are homeless or who are very low-income and at risk of 
        homelessness;
            (C) the demonstrated willingness and capacity of the 
        jurisdiction to work cooperatively with the Department of 
        Housing and Urban Development (hereafter in this Act referred to 
        as the ``Department''), nonprofit organizations, foundations, 
        other private entities, and the community to design and 
        implement an initiative to achieve the purposes of this 
        subsection;
            (D) the demonstrated willingness of nongovernmental 
        organizations to commit financial and other resources to a 
        comprehensive homeless initiative in the jurisdiction;
            (E) the commitment of the jurisdiction to make necessary 
        changes in policy and procedure to provide sufficient 
        flexibility and resources as necessary to implement and sustain 
        the initiative;
            (F) national geographic diversity in the designation of 
        jurisdiction; and
            (G) such other factors as the Secretary determines to be 
        appropriate.
        (4) Consultation._Prior to designating jurisdictions under 
    paragraph (1), the Secretary shall consult with the Committee on 
    Banking, Finance and Urban Affairs of the House of Representatives 
    and the Committee on Banking, Housing, and Urban Affairs of the 
    Senate regarding such designations.
        (5) Comprehensive strategy._Recipients of assistance under this 
    subsection shall, in cooperation with the Secretary, other 
    governmental entities, nonprofit organizations, foundations, other 
    private entities, and the community, develop a comprehensive plan 
    that_
            (A) sets forth a realistic and feasible strategy that 
        contains specific projects and activities to carry out the 
        purpose of this section;
            (B) demonstrates the willingness of the appropriate 
        government and private entities and other parties to participate 
        cooperatively in this plan;
            (C) specifies the projects and activities to be funded under 
        this subsection;
            (D) provides an estimate of the cost of implementing the 
        initiative funded under this subsection;
            (E) enumerates amounts to be made available to fund the 
        comprehensive homeless initiative by participating governmental 
        entities, nonprofit organizations, foundations, and the 
        community, as appropriate, and requests funds from the Secretary 
        pursuant to this subsection; and
            (F) provides such other information as the Secretary 
        determines to be appropriate.
        (6) Designation._The designation referred to in paragraph (1) 
    and assistance provided under paragraph (2) shall be made on a 
    noncompetitive basis.
    (d) Innovative Project Funding._
        (1) Authority._The Secretary is authorized to provide assistance 
    under this subsection to jurisdictions and nonprofit organizations 
    operating within such jurisdictions to establish innovative programs 
    to carry out the purpose of this section.
        (2) Applications._Applications for assistance under this 
    subsection shall be in such form, and shall include such 
    information, as the Secretary shall determine. Each application 
    shall include_
            (A) a description of the extent of homelessness in the 
        jurisdiction;
            (B) an explanation of the extent to which the existing 
        systems, both public and private, for homelessness prevention, 
        outreach, assessment, shelter, services, transitional services, 
        transitional housing, and permanent housing available within the 
        jurisdiction would benefit from additional resources to achieve 
        a comprehensive approach to meeting the needs of individuals and 
        families who are homeless, or who are very low-income and at 
        risk of homelessness;
            (C) a description of the projects and activities for which 
        the applicant is requesting funding under this subsection and 
        the amounts requested;
            (D) the demonstrated willingness and capacity of the 
        jurisdiction to work cooperatively with the Department, 
        nonprofit organizations, foundations, other private entities, 
        and the community, to the extent feasible, to design and 
        implement an initiative to achieve the purposes of this 
        subsection;
            (E) a statement of commitment from the jurisdiction to make 
        necessary changes in policy and procedure to provide sufficient 
        flexibility and resources as necessary to implement and sustain 
        the program; and
            (F) such other information as the Secretary determines to be 
        appropriate.
        (3) Criteria._The Secretary shall establish selection criteria 
    for awarding assistance under this subsection, which shall include_
            (A) the extent to which the program described in the 
        application achieves the purpose of this section;
            (B) the extent to which the applicant demonstrates the 
        capacity to implement a program that achieves the purpose of 
        this section;
            (C) the extent to which the program described in the 
        application is innovative and may be replicated or may serve as 
        a model for implementation in other jurisdictions;
            (D) diversity by geography and community type; and
            (E) such other criteria as the Secretary determines to be 
        appropriate.
    (e) Reports._
        (1) Recipients of funds._Each recipient of funds under 
    subsections (c) and (d) shall submit to the Secretary a report or 
    series of reports, in a form and at a time specified by the 
    Secretary. Each report shall_
            (A) describe the use of funds made available under this 
        section; and
            (B) include a description and an analysis of the programs 
        and projects funded, the innovative approaches taken, and the 
        level of cooperation among participating parties.
        (2) Interim hud report._The Secretary shall submit to the 
    Congress, in conjunction with the 1995 legislative recommendations 
    of the Department, a report describing the results of the 
    demonstration program funded under this section to date. The report 
    shall contain a summary and analysis of all information contained in 
    any reports received by the Secretary pursuant to paragraph (1) and 
    shall contain recommendations for future action.
        (3) Final hud report._Not later than 3 months after all 
    recipient reports have been submitted under paragraph (1), the 
    Secretary shall submit to the Congress a final report. The 
    Secretary's final report shall contain a summary and analysis of all 
    information contained in the reports received by the Secretary 
    pursuant to paragraph (1) and shall contain recommendations for 
    future action.
    (f) Authorization of Appropriations._There are authorized to be 
appropriated $200,000,000 for fiscal year 1994 to carry out this 
section. Of the amounts appropriated pursuant to this subsection, not 
less than 25 percent shall be used to carry out innovative project 
funding under subsection (d). All funds shall remain available until 
expended.
    (g) Repeal._This section shall be repealed effective on October 1, 
1994.

SEC. 3. MOVING TO OPPORTUNITIES.

    Section 152(e) of the Housing and Community Development Act of 1992 
(42 U.S.C. 1437f note) is amended in the first sentence by striking 
``$52,100,000'' and inserting ``$165,000,000''.
SEC. 4. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE 
HOUSING.
    (a) In General._The Secretary is authorized to provide assistance 
through the National Community Development Initiative to develop the 
capacity and ability of community development corporations and community 
housing development organizations to undertake community development and 
affordable housing projects and programs.
    (b) Form of Assistance._Assistance under this section may be used 
for_
        (1) training, education, support, and advice to enhance the 
    technical and administrative capabilities of community development 
    corporations and community housing development organizations;
        (2) loans, grants, or predevelopment assistance to community 
    development corporations and community housing development 
    organizations to carry out community development and affordable 
    housing activities that benefit low-income families; and
        (3) such other activities as may be determined by the National 
    Community Development Initiative in consultation with the Secretary.
    (c) Matching Requirement._Assistance provided under this section 
shall be matched from private sources in an amount equal to 3 times the 
amount made available under this section.
    (d) Implementation._The Secretary shall by notice establish such 
requirements as may be necessary to carry out the provisions of this 
section. The notice shall take effect upon issuance.
    (e) Authorization._There are authorized to be appropriated 
$25,000,000 for fiscal year 1994 to carry out this section.
SEC. 5. AUTHORIZATION FOR COMMUNITY HOUSING PARTNERSHIPS AND SUPPORT FOR 
STATE AND LOCAL HOUSING STRATEGIES.
    Section 205 of the Cranston-Gonzalez National Affordable Housing Act 
(12 U.S.C. 12724) is amended_
        (1) in paragraph (1), by striking ``$14,000,000 for fiscal year 
    1994'' and inserting ``$25,000,000 for fiscal year 1994''; and
        (2) in paragraph (2), by striking ``$11,000,000 for fiscal year 
    1994'' and inserting ``$22,000,000 for fiscal year 1994''.
SEC. 6. SECTION 8 COMMUNITY INVESTMENT DEMONSTRATION PROGRAM.
    (a) Demonstration Program._The Secretary shall carry out a 
demonstration program to attract pension fund investment in affordable 
housing through the use of project-based rental assistance under section 
8 of the United States Housing Act of 1937.
    (b) Funding Requirements._In carrying out this section, the 
Secretary shall ensure that not less than 50 percent of the funds 
appropriated for the demonstration program each year are used in 
conjunction with the disposition of either_
        (1) multifamily properties owned by the Department; or
        (2) multifamily properties securing mortgages held by the 
    Department.
    (c) Contract Terms._
        (1) In general._Project-based assistance under this section 
    shall be provided pursuant to a contract entered into by the 
    Secretary and the owner of the eligible housing that_
            (A) provides assistance for a term of not less than 60 
        months and not greater than 180 months; and
            (B) provides for contract rents, to be determined by the 
        Secretary, which shall not exceed contract rents permitted under 
        section 8 of the United States Housing Act of 1937, taking into 
        consideration any costs for the construction, rehabilitation, or 
        acquisition of the housing.
        (2) Amendment to section 203._Section 203 of the Housing and 
    Community Development Amendments of 1978 (12 U.S.C. 1701z-11) is 
    amended by adding at the end the following new subsection:
    ``(l) Project-based assistance in connection with the disposition of 
a multifamily housing project may be provided for a contract term of 
less than 15 years if such assistance is provided_
        ``(1) under a contract authorized under section 6 of the HUD 
    Demonstration Act of 1993; and
        ``(2) pursuant to a disposition plan under this section for a 
    project that is determined by the Secretary to be otherwise in 
    compliance with this section.''.
    (d) Limitation._(1) The Secretary may not provide (or make a 
commitment to provide) more than 50 percent of the funding for housing 
financed by any single pension fund, except that this limitation shall 
not apply if the Secretary, after the end of the 6-month period 
beginning on the date notice is issued under subsection (e)_
        (A) determines that_
            (i) there are no expressions of interest that are likely to 
        result in approvable applications in the reasonably foreseeable 
        future; or
            (ii) any such expressions of interest are not likely to use 
        all funding under this section; and
        (B) so informs the Committee on Banking, Finance and Urban 
    Affairs of the House of Representatives and the Committee on 
    Banking, Housing, and Urban Affairs of the Senate.
    (2) If the Secretary determines that there are expressions of 
interest referred to in paragraph (1)(A)(ii), the Secretary may reserve 
funding sufficient in the Secretary's determination to fund such 
applications and may use any remaining funding for other pension funds 
in accordance with this section.
    (e) Implementation._The Secretary shall by notice establish such 
requirements as may be necessary to carry out the provisions of this 
section. The notice shall take effect upon issuance.
    (f) Applicability of ERISA._Notwithstanding section 514(d) of the 
Employee Retirement Income Security Act of 1974, nothing in this section 
shall be construed to authorize any action or failure to act that would 
constitute a violation of such Act.
    (g) Report._Not later than 3 months after the last day of each 
fiscal year, the Secretary shall submit to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate a report 
summarizing the activities carried out under this section during that 
fiscal year.
    (h) Establishment of Standards._Mortgages secured by housing 
assisted under this demonstration shall meet such standards regarding 
financing and securitization as the Secretary may establish.
    (i) GAO Study._The Comptroller General of the United States shall 
conduct a study evaluating the demonstration authorized under this 
section and shall report its findings to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate not later 
than 3 months after the conclusion of the demonstration.
    (j) Authorization of Appropriations._There are authorized to be 
appropriated $100,000,000 for fiscal year 1994 to carry out this 
section.
    (k) Termination Date._The Secretary shall not enter into any new 
commitment to provide assistance under this section after September 30, 
1998.

SEC. 7. NATIONAL COMMISSION ON MANUFACTURED HOUSING.

    (a) Extension of Commission._Section 943(g) of the Cranston-Gonzalez 
National Affordable Housing Act (Public Law 101-625; 104 Stat. 4415) is 
amended by striking ``on October 1, 1993'' and inserting ``on October 1, 
1994''.
    (b) Final Report._Section 943(d)(2) of the Cranston-Gonzalez 
National Affordable Housing Act (Public Law 101-625; 104 Stat. 4414) is 
amended by striking ``9 months after the Commission is established 
pursuant to subsection (b)'' and inserting ``August 1, 1994''.
    (c) Interim Report._Section 943(d) of the Cranston-Gonzalez National 
Affordable Housing Act (Public Law 101-625; 104 Stat. 4414) is amended_
        (1) by redesignating paragraph (2) (as amended by subsection (b) 
    of this section) as paragraph (3); and
        (2) by inserting after paragraph (1) the following new 
    paragraph:
        ``(2) Interim report._Not later than March 1, 1994, the 
    Commission shall submit an interim report to the Secretary and the 
    Congress. The report shall describe the activities of the Commission 
    under paragraph (1) and shall contain any information specified in 
    such paragraph that is available to the Commission and any 
    evaluations and recommendations specified in such paragraph that may 
    be made by the Commission, at such time.''.
    (d) Authorization of Appropriations._Section 943(f) of the Cranston-
Gonzalez National Affordable Housing Act (Public Law 101-625; 104 Stat. 
4415) is amended by inserting after the first sentence the following new 
sentence: ``There are authorized to be appropriated for fiscal year 1994 
such sums as may be necessary to carry out this section.''.
SEC. 8. RECIPROCITY IN APPROVAL OF HOUSING SUBDIVISIONS AMONG FEDERAL 
AGENCIES.
    (a) Extension of Authority._Section 535(b) of the Housing Act of 
1949 (42 U.S.C. 1490o(b)) is amended by striking ``June 15, 1993'' and 
inserting ``September 30, 1994''.
    (b) Retroactivity._An administrative approval of a housing 
subdivision made after June 15, 1993, and before the date of the 
enactment of this Act is approved and shall be considered to have been 
lawfully made, but only if otherwise made in accordance with the 
provisions of section 535(b) of the Housing Act of 1949.

SEC. 9. FHA INSURANCE AUTHORITY.

    Section 531(b) of the National Housing Act (12 U.S.C. 1735f-9(b)) is 
amended by striking ``$65,905,824,960'' and inserting 
``$110,165,000,000''.

SEC. 10. GNMA GUARANTEE AUTHORITY.

    Section 306(g)(2) of the National Housing Act (12 U.S.C. 1721(g)(2)) 
is amended by striking ``$88,000,000,000'' and inserting 
``$107,700,000,000''.

SEC. 11. ADMINISTRATION OF SECTION 8 PROGRAM.

    (a) Administrative Fee._Notwithstanding the second sentence of 
section 8(q)(1) of the United States Housing Act of 1937, other 
applicable law, or any implementing regulations and related 
requirements, the fee for the ongoing costs of administering the 
certificate and housing voucher programs under subsections (b) and (o) 
of section 8 of such Act during fiscal year 1994 shall be_
        (1) not less than a fee calculated in accordance with the fair 
    market rents for Federal fiscal year 1993; or
        (2) not more than_
            (A) a fee calculated in accordance with section 8(q) of such 
        Act, except that such fee shall not be in excess of 3.5 percent 
        above the fee calculated in accordance with paragraph (1); or
            (B) to the extent approved in an appropriation Act, a fee 
        calculated in accordance with such section 8(q).
    (b) Study._
        (1) In general._The Secretary shall conduct a study assessing 
    the costs incurred by public housing agencies in administering the 
    voucher and certificate programs under subsections (b) and (o) of 
    section 8 of the United States Housing Act of 1937.
        (2) Specific requirements._The study conducted under this 
    subsection shall_
            (A) take into account variances in costs attributable to the 
        geographic area, the tenant population, and the number of units 
        covered by a public housing agency; and
            (B) include an analysis of the costs associated with Federal 
        mandates, such as the family self-sufficiency program, and such 
        other factors that the Secretary determines to be appropriate.
        (3) Submission to congress._The Secretary shall submit to the 
    Congress a report containing the results of the study conducted 
    under this subsection in conjunction with the Department of Housing 
    and Urban Development's 1994 legislative recommendations.

SEC. 12. AMENDMENTS TO PUBLIC LAW 102-389.

    (a) Extension of Time._Subject to appropriations made in advance in 
an appropriations Act, title II of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1993 (Public Law 102-389), is amended under the 
heading ``Administrative Provisions'' in the second undesignated 
paragraph by striking ``October 1, 1993'' and inserting ``October 1, 
1994''.
    (b) Project-Based Assistance._Title II of the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1993 (Public Law 102-389), is amended under 
the heading ``Administrative Provisions'' in the ninth undesignated 
paragraph by inserting ``(which may be project-based assistance)'' after 
``36 units''.







                                Speaker of the House of Representatives.







                             Vice President of the United States and    
                                                President of the Senate.